Nest Wealth VS WealthSimple
Users must invest at least $1,000 and can expect fees of between 0.4% and 0.7%. Administration fees are 0.24% for accounts with balances between $0 and $99.99 and 0.20% for accounts over $100,000. Monthly subscription plans start at $20 per month and are capped at $80 per month.
The average total costs are calculated based on management fees by Invisor at 0.5%, and the average management expenses ratio (MER) embedded securities under portfolio management at 0.2%. For investors with more than $100,000 in assets, the management fee is 0.25%, which can be reduced to 0.20%. Additionally, the MER (management expense ratio) of the ETFs held in your portfolio is a weighted average of 0.10% – 0.35% of the value of your SmartPortfolio account.
Minimum investment No minimum investment to open an account to invest in Wealthsimple Basic Nest Wealth Your money can be invested until you reach $1,000 in deposits Tax Loss Harvesting Questwealth offers tax losses harvesting for all customers Wealthsimple Black offers tax losses harvesting for customers of the WS Black generation. In addition, investors with an account over $325,000 can pay lower fees on Wealthsimple for larger portfolios above $325K and save on Nest Wealth a lot of fees. Wealthsimple Nest Wealth Total Valuation Young & Thrifty 4.9 4.6 Social Responsible Investing Halal Investing Dividends Reinvested Minimum Balance Start Investing None Auto Deposit Management Fees 0.5% 0% $100K $20 / month $75K $40 / month 75% 150K $80 / month 150K.
Robo Advisor Annual Fees (MER) and Other Fees Wealthsimple Basic 0.40% to 0.50% per year (average $0.20 MER) None Portfolio 0.20-0.25% per year (average 0.19 MER) None Nest Wealth 2.0-8.0% per month (average $1.13 MER) Customers pay $9.99 per trade and are cap at $100 per year. Responsible Investing Both Wealthsimple and Questwealth offer responsible investment portfolios, but Nest Wealth currently has no SRI option. The below comparison table gives you an idea of how much it costs to invest in various portfolio sizes, such as $50,000, $150,000 and $250,000.
It is important to mention that this chart does not show that Nest Wealth has a flat fee of $265K but rather shows a gradual and unstoppable increase in Wealthsimple fees. There is another way to display the data: Wealthsimple vs. Nest Wealth’s annual fees as a percentage of total investments minus capital and interest.
Nest Wealth specializes in low-cost ETFs and charges an average of 0.13 percent for balanced portfolios. Its fee structure becomes cost-effective for investors with account balances above $250,000. Wealthsimple offers a cost-effective solution to investors with lower balances.
Both Nest Wealth and Wealthsimple monitor the different investment portfolios they offer to their clients. When portfolios no longer align with a client’s investment objectives, they balance them based on market movements and portfolio thresholds to realign their investment objectives and risk tolerance. As a result, Wealthsimple Black and WealthSimple Generation customers have better financial planning advice than Nest Wealth customers because they are assigned a dedicated portfolio manager.
Wealthsimple has a more robust range of services depending on account size, and there are no promotions or fees for the first year, so look for them if you decide to go with them. Both Questwealth and Nest Wealth have a team of portfolio managers that look after your investments but don’t offer personal financial planning to their individual clients. In addition, Questrade has launched its own Robo-adviser platform called Questwealth Portfolio.
Nest Wealth is a Robo-adviser in Canada that offers a professional online portfolio management service for investors who want to minimize their investment fees and maximize their returns. There is no fee associated with Questwealth Portfolio account opening or closing, trading fees or electronic fund transfer fees. A major advantage of Nest Wealth is that once you open an account with the platform, you can get professional support from a registered adviser who will be available to you via email, chat or phone.
By automating parts of the investment process and using passive investing strategies to reduce fees, Robo-advisers not only minimize the burden of damaging behavioural distortions on your portfolio but also show that they can increase your chances of outperforming actively managed investment funds over the long term. There are several Robo-advisers in Canada, and each offers its own unique perks and strategies. For example, Robo-advisers such as Nest Wealth and Wealthsimple offer investors small accounts access to professional wealth management at low fees.
Ultimately, with more than two Robo-advisers, there are plenty of considerations when planning ETFs, fees and returns on your portfolio. If you’re not prepared to spend an evening calculating maintenance fees and don’t speak Microsoft Excel terms, give Investing Better Canada an online fee calculator and select the Robo-adviser that gives you the most cash for your hard-earned money. I’m not sure I’ve ever discussed using Wealthsimple over TFSA or RRSP.
We have customer service, access to financial advisers and no minimum accounts. Boomer Echo readers will receive a 50% cash bonus when they open an account and fund up to $500 in 45 days. Once you deposit more than $100,000 into your Wealthsimple account, you can unlock our Premium and Black plans.
Nest Wealth charges are considered a percentage of assets, and as the portfolio grows, they will rise to 80 percent per month, meaning fees will fall over time relative to the size of your account.
While Robo-advisers are not built for millennials, investors of all ages and stages can benefit from a low-cost, hands-on approach to investing. Nest Wealth is aimed at those who have a lifetime of investing or are thinking about retirement. Because of its unique fee structure, the best perk for these investors is that Nest Wealtha’s EFT portfolio options are suitable for those with lower risk tolerance.